Natural Gas Weekly Price Forecast – Natural Gas Continues to See Ceiling

Natural Gas Weekly Technical Analysis

The natural gas markets initially fell during the week but continued to find support at the $3 level and resistance at the $3.40 level. That being said, this week we did pierce that crucial $3.40 level. So, I suspect that if we can break above the top of the candlestick for this past week, natural gas should continue to go higher, maybe even as high as $5. Temperatures in the United States are cold and have been for a minute here and fairly early in the season. So, it’ll be interesting to see if the pricing of natural gas continues to move right along with that.

Typically speaking, this time of year, natural gas does fairly well, and then we get a big sell-off. The idea, of course, being that the colder temperatures in the United States drive up demand overall. The market going sideways between $3 and $3.40 also makes a bit of sense, because we’re just trying to build up the necessary inertia to break out to the upside. I do not have any interest in shorting natural gas anytime soon.

Although there will come a point late in the winter where shorting it is the thing that will get you paid as traders start to focus on spring. As things stand right now, it’s been cold so far this winter. I don’t know if it’s getting any better here. So, I suspect natural gas will be a buy on the dip or buy on the breakout type of scenario.

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